Sharpscan & Prints Ltd. (SHARPSCPRINT) - Auditors Report

Company auditors report

SHARPSCAN AND PRINTS LIMITED
ANNUAL REPORT 2000-2001
AUDITORS' REPORT
To
The Members,
SHARPSCAN & PRINTS LIMITED.
We have audited the attached Balance Sheet of Sharpscan & Prints Limited,
as at 31st March, 2001 and the Profit and Loss Account for the year ended
on that date, annexed thereto which are in agreement with the books of
account of the company.
As required by the Manufacturing and Other Companies (Auditors Report)
Order, 1988 issued by the Company Law Board in terms of Section 227(4A) of
the Companies Act, 1956 we report that:
1) The Company has maintained proper records, showing full particulars,
including quantitative details and situation of fixed assets. As the
information and explanation given to us, the company has physically
verified its assets during the year. No material discrepancies were noticed
on such physical verification.
2) The Fixed Assets of the company have not been revalued during the year.
3) The Management has conducted the physical verification in respect of
finished goods, raw materials, Stores and spare parts, at the end of the
year under review. In our opinion the frequency of verification is
reasonable.
4) In our opinion and according to the information and explanations given
to us, the procedure of physical verification of stocks followed by the
management were reasonable and adequate in relation to the size of the
company and nature of its business.
5) The discrepancies noticed on verification between the physical stocks
and records were not material in relation to the operations of the company
and the same have been properly dealt with in the books of account.
6) In our opinion and on the basis of our examination, the valuation of
stocks is fair and proper in accordance with the normally accepted
accounting principles and is on the same basis as in the previous year.
7) The company has not taken any loans, secured or unsecured from
companies, firms or other parties listed in the register maintained under
section 301 of the Companies Act, 1956. We are informed that there were no
companies under the same management with in the meaning of sub section (1B)
of Section 370 of the Companies Act, 1956.
8) The Company has not granted any unsecured loans to Companies, firms or
other parties listed in the register maintained under section 301 of the
Companies Act, 1956.
9) In our opinion and according to the information and explanations given
to us there are adequate internal control procedures commensurate with the
size of the company has the nature of its business with regard to the
purchases of stores including components, plant & machinery, equipment and
other assets and for the sale of goods.
10) In respect of loans and advances given in the nature of loans the
parties are repaying the principal and interest, where applicable as
stipulated.
11) There are no transactions of purchase of goods and materials and sale
of goods and materials made in pursuance of contracts or arrangements
entered in the registers maintained under section 301 of the Companies Act,
1956 aggregating during the year to Rs. 50,000/- or more in respect of each
party.
12) The company has regular procedure for the determination of
unserviceable or damaged stores, raw materials and finished goods.
13) The Company has not accepted any public deposits.
14) According to the information and explanations given to us, the company
does not generate any by-products or scrap.
15) In our opinion the company has an internal audit system commensurate
with the size of the company and nature of its business.
16) The Central Government has not prescribed the maintenance of cost
records under section 209 (1) (d) of the Companies Act, 1956 in respect of
the products manufactured by the company.
17) According to the information and explanations given to us, the
provision of Provident Fund is not yet applicable to the company. According
to the records of the company, the company has not been regular in
depositing the Employee State Insurance dues with the appropriate
authorities. The company is yet to remit to ESI dues amount to Rs.50,118.
18) According to the information and explanations given to us, there were
no undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales
Tax, Customs duty and Excise duty which have remained outstanding as on
31st March, 2001 for a period of more than six months from the date they
become payable.
19) According to the information and explanations given to us, no personal
expenses of Employees or Directors have been charged to Profit & Loss
Account, other than those payable under contractual obligations or in
accordance with the generally accepted business practice.
20) The Company is not a sick industrial company within the meaning of
clause (o) of sub section( 1) of Section 3 of the Sick Industrial Companies
(Special Provisions) Act, 1985.
21) According the information and explanations given to us, in respect of
the trading activities of the company, there were no materially damaged
goods.
Further to the above:
a) We have obtained all the information and explanations which, to the best
of our knowledge and belief, were necessary for the purpose of our audit.
b) In our opinion, proper books of accounts, as required by law have been
kept by the Company so far as it appears from our examination of such
books, and
c) In our opinion, the Balance Sheet and Profit & Loss Account dealt with
by the report are in compliance with the Accounting Standards referred to
in Section 211 (3C) of the Companies Act, 1956 in the manner so required
and give a true and fair view.
d) In our opinion and according to the information and explanations given
to us, no director of the company is disqualified from being appointed as
director under clause (g) of sub section of section 274 of Companies Act,
1956.
e) In our opinion and to the best of our information and according to the
explanations given to us, the said accounts, read with note No. 6 & 8
regarding recovery of Sundry Debtors amount and Sales Tax liability being
subject to assessment respectively and other notes thereon, give the
information required by the Companies Act, 1956 in the manner so required
and give a true and fair view:
i) In the case of Balance Sheet, of the State of affairs as at 31st March,
2001, and
ii) In the case of the Profit and Loss Account of the loss of the company
for the period ended on that date.
For Rao & Sridhar
Chartered Accountants
(G.S. Sridhar)
Partner.
Place: Hyderabad.
Date : 04.12.2001.